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Archer Daniels Midland Company
Notes to Consolidated Financial Statements (Continued)
Note 14. Segment and Geographic Information (Continued)
The Oilseeds Processing segment includes activities related to the crushing and origination of oilseeds such as
soybeans, cottonseed, sunflower seeds, canola, peanuts, and flaxseed into vegetable oils and protein meals
principally for the food and feed industries. In addition, oilseeds and oilseed products may be processed
internally or resold into the marketplace as raw materials for other processing. Crude vegetable oil is sold "as is"
or is further processed by refining, bleaching, and deodorizing into salad oils. Salad oils can be further
processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially
refined oil is sold for use in chemicals, paints, and other industrial products. Refined oil can be further processed
for use in the production of biodiesel. Oilseed meals are primary ingredients used in the manufacture of
commercial livestock and poultry feeds. Oilseeds Processing includes activities related to the production of
natural health and nutrition products and the production of other specialty food and feed ingredients. This
segment also includes activities related to the Company’s interests in unconsolidated affiliates in Asia,
principally Wilmar International Limited.
The Corn Processing segment includes activities related to the production of sweeteners, starches, dextrose, and
syrups primarily for the food and beverage industry as well as activities related to the production, by
fermentation, of bioproducts such as ethanol, amino acids, and other food, feed and industrial products.
The Agricultural Services segment utilizes the Company’s extensive grain elevator and transportation network to
buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, barley, and
edible beans, and resells or processes these commodities primarily as food and feed ingredients for the
agricultural processing industry. Agricultural Services’ grain sourcing and transportation network provides
reliable and efficient services to the Company’s agricultural processing operations. Also included in Agricultural
Services are the activities of A.C. Toepfer International, a global merchandiser of agricultural commodities and
processed products.
Other includes the Company’s remaining processing operations, consisting of activities related to processing
agricultural commodities into food ingredient products such as wheat into wheat flour, cocoa into chocolate and
cocoa products, and barley into malt. Other also includes financial activities related to banking, captive
insurance, private equity fund investments, and futures commission merchant activities.
Intersegment sales have been recorded at amounts approximating market. Operating profit for each segment is
based on net sales less identifiable operating expenses, including an interest charge related to working capital
usage. Also included in segment operating profit are equity in earnings of affiliates based on the equity method
of accounting. General corporate expenses, investment income, unallocated interest expense, marketable
securities transactions, FIFO to LIFO inventory adjustments and minority interest eliminations have been
excluded from segment operations and classified as Corporate.
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